On the first day of 2021, the Maharashtra government has declared that as the government reduced the stamp duty rates in the year 2020 by 3% and applicable till December 31, 2020, it will now rise by 1% from this year only. And this will continue till the end of the fiscal year.
According to the State Revenue Minister, the government took this initiative to reduce the stamp duty to boost the real estate field that needs recovery after a massive crisis that occurred due to the pandemic.
And due to this decision, the state treasury earned the benefits out of it, which can also be helpful for a state. The not so good possibilities of losses that occur at this time during the pandemic where both the buyers and the builders were refrained from buying or selling anything helped them to participate in the business activities and, they ended up doing business in all big cities like Mumbai, Pune and bought houses or sold them, that is anyday a significant step towards the state’s economy.
If the growth can get compared, then we can see the difference in the revenue submission that, in the year 2019, registrations were around nine lakhs. Still, in 2020 it turned out to be about 12 lakhs; in 2019, the amount of revenue somewhere lied in between 10 crores, whereas in 2020, that figure drastically changed to 11 crores, so any day the difference has come up with a lot of changes.
As per the data, a 92% rise in the registration, whereas 59% growth occurred compared to the amounts that came up in 2019. There has been intense speculation roaming around the world right now that properties tend to become cheaper in Maharashtra’s states so far. Hence, it is both a lucrative offer for all interested people in this field so far. This decision will directly affect the agreement value, such as title deed, equitable mortgage, hypothecation submitted for all types of loans, etc.
Now, suppose we look thoroughly at the system. In that case, the exact calculation certainly comes like this, somebody who borrowed the loan has to pay 9000 to register the loan document, if the whole budget of the home loan stays 30 lakhs approximately.
On the other hand, there lies a positive side, too, which says that the stamp duties on home loans happened to be possession dependent. That percentage has reduced from 0.5% to 0.3%, 2% of the reduction in this particular segment became significant.
One pertinent point that comes across that whenever the sale deed is registered with the sub-register, the buyer has to submit all the original documents to the bank to get the loan to complete the purchasing process. In this regard, when online registrations are charging around fifteen thousand, Maharashtra’s revenue minister openly said that all the regulations have come in front to make it mandatory for the people to abide by the laws in all ways possible.
From 2021 the buyers of all properties in this state have to pay the amount of 3% on stamp duty, and this process will be in existence till 2021 march. So practically, buyers have a minimal period of the offer.